China's magnesium ingot exports increased by 23.74% year-on-year from January to February [SMM Analysis]

According to customs data, China exported 44,069 tons of magnesium ingots from January to February 2023, a year-on-year increase of 23.74%. Among the exports of magnesium ingots from January to February 2023, 12,751 tons were exported to the Netherlands, accounting for 29%; 4,141 tons were exported to India, accounting for 9%; 3,439 tons were exported to Canada, accounting for 8%; 3,147 tons were exported to South Korea, accounting for 7 %; 2,826 tons were exported to Japan, accounting for 7%.

According to SMM, the reasons for the increase in magnesium ingot exports are: 1. As the Spring Festival approaches, foreign customers replenished their stocks in advance, and foreign customers’ purchasing volume showed a concentrated increase. 2. After a rapid decline in magnesium ingot prices in the second half of 2023, domestic magnesium prices consolidated at a low level in January, which to a certain extent stimulated foreign customers to place orders.

Among other exported magnesium products, China's magnesium alloy exports in January 2024 were 9,924 tons, a year-on-year decrease of 7.1%, and a month-on-month increase of 30.6%; in February 2024, China's magnesium alloy exports were 6,379 tons, a year-on-year decrease of 25.4%, and a month-on-month decrease of 35.7%. In January 2024, China's magnesium powder exports were 7,091 tons, a year-on-year increase of 19%, and a month-on-month increase of 3.5%; in February 2024, China's magnesium powder exports were 4,767 tons, a year-on-year increase of 12.3%, and a month-on-month decrease of 32.8%.

As of Mar 21, the mainstream market price of 90 magnesium ingots in the main production areas is 17,500-17,600 yuan/ton, which is 2,400 yuan/ton lower than the first day of production. The continuous price reduction in the past month is a continuation of the overall market before the Spring Festival. At the same time, the continuous production of magnesium plants has aggravated the strong supply and weak demand. Magnesium prices continued to decline after breaking through the cost line, causing production suspensions in the magnesium market. Recently, magnesium prices recovered. It is expected that overseas demand will gradually recover.